Before the storm even hit the City Commission had already taken a gamble by approving a $9.2 beach renourishment project that would restore the battered beach to its original state.

The project's cost is reimbursable by federal, state and county governments, but to begin with, the city will borrow the funds and pay the interest.

The county has allocated its share of the project, about 25 percent of the cost, in its budget for the 2012-13 fiscal year. And the state has already committed the other 25 percent through the Department of Environmental Protection. The remaining $5.1 million is up in the air.

Vice mayor Tom Carney said that in the wake of Sandy, he has no doubt the federal government will step in to cover the gap, but other city officials aren't so sure.

"It's hard to say," said Assistant City Manager Doug Smith of the federal reimbursement. "There's obviously going to be beaches in the Northeast that have issues and they may be priority."

Typically, the city has been able to get money earmarked for such projects from the federal government, but with the current prohibition on legislative earmarks the city won't be able to get the funds.

City staff members said that in 2014, when the city's debt service will drop by some $1.4 million, it will be able to afford the expense even if the federal government fails to pay back the money. The city would pay the interest in 2013 and begin paying principle payments of about $600,000 a year for 10 years in 2014, according to a report submitted to the City Commission.

But for those directly affected by the beach erosion, the project couldn't come at a better time, regardless of the price tag.

"Even before the storm came there was barely enough room for people to sit on the beach on the weekends," said Albert Richwagen, of Richwagen's Delray Bike & Sport. "I'm curious to see how many people can sit on the small strip of sand that is left."

Richwagen runs a beach sport rental stand outside the Seagate Beach Club — the site of a rogue wave that almost washed his business into the sea.

Richwagen said he was preparing his business for the full moon high tide after the storm had already passed, when a giant wave hit the shore and sent water and sand all the way into the Seagate Beach Club pool, almost washing away some people who had gathered around to see the high surf.

"Everyone began screaming, and I was standing there with a piece of plywood to cover the door when the wave hit," he said. "I saw a kid almost get washed away by that rogue wave."

Richwagen said the beach is an integral part of Delray Beach's economy and he's hoping the project, which is slated to begin in February, will help restore the beach to its original state.

Smith said the work will be done in phases, with 500-foot sections of beach closed at a time to minimize closures and inconveniences for visitors.

Sarah Martin, of the Delray Beach Marketing Cooperative, said the project is a huge investment in the future of tourism in Delray Beach.

"The beach is one of the biggest asset but it is not the only asset that we have," she said. "I don't think it's going to affect our tourism season."